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P 5 - 6 Time value Isabella wishes to purchase a Nissan GTR . The car costs 8 5 , 0 0 0 today and,

P5-6 Time value Isabella wishes to purchase a Nissan GTR. The car costs 85,000 today and, after completing her graduation, she has secured a well-paying job and is able to save for the car. The price trend indicates that its price will increase by 3% to 6% every year. Isabella wants to save enough to buy the car in five years from today.
a. Estimate the price of the car in five years if the price increases by (1)3% per year and (2)6% per year.
b. How much more expensive will the car be if the price increases by 6% rather than 3%?
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